S&P 500 Price Forecast – Stock Markets Gap Lower on China Concerns

The S&P 500 has gapped lower to kick off the trading session on Friday but seems to be finding a little bit of support near the 50 day EMA. Regardless, there is a large amount of buyers underneath, but I think it is probably best to wait to see some type of supportive candlestick. At this point in time I believe that the market is trying to find support near the 2800 level, possibly even the 2750 level. Given enough time, this is a market that should find an of value hunters to come back in and push this market to the upside.

S&P 500 Video 04.05.20

If the market breaks down below the 2750 handle, then it is likely that the S&P 500 will drop another 50 points rather quickly. I do not think the market can break down rather easily, but then again who knows? This is a market that is trying to figure out whether or not this has been a bear market rally or if it is the beginning of the market trying to turn itself around. Stock markets have completely divorced itself from reality, but that would not be the first time. Bond markets and currency markets do not seem to agree with the stock market, but at the end of the day it will do what it wants to do. We are still above massive support underneath, so one would have to assume there is probably a likelihood of a bounce.